Alpha Exchange
25 Sayings on Vol and Risk…Part 2 of 5
Feb 7, 2024
In this episode, the podcast explores sayings on volatility and risk, discussing topics such as the correlation of securities, the relationship between equities and interest rates, the concept of things breaking in markets, and the insights of Alan Greenspan. It also delves into the intersection of high finance and entrepreneurship as well as the impact of historical events on markets.
25:49
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Fragilities in markets arise from the passage of time, making it challenging to fully understand historical events' impact in the current era.
- Correlations play a crucial role in asset prices, and there are no bad securities, only bad correlations.
Deep dives
The Fragility of Markets Over Time
The speaker discusses the fragilities in markets that originate from the passage of time. Historical market events become blurry in the rearview mirror, making it challenging to appreciate their impact. The speaker cites the example of Paul Volcker's fight against inflation in 1979 and how it's difficult to fully understand the implications of high interest rates back then in the current lowflation era. The speaker also mentions the tendency of investors to succumb to recency bias, believing that tomorrow will unfold much like today has.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
